The GBP/USD uptrend remains intact as long as the pair stays above the key support level of 1.3043. If buyers are able to reclaim the level of 1.3298, this will expose the March 2022 peak at 1.3437. On the other hand, a dip below 1.3200 could expose further support levels such as August 22 at 1.3130 and the 1.3100 figure.
The Pound Sterling continued to rise and reached multi-year highs around 1.3246 on Tuesday as the US Dollar struggled to recover after a dovish stance by Fed Chair Jerome Powell at his Jackson Hole speech. Investors now expect the US central bank to lower rates at the September meeting, which is benefiting the GBP/USD pair. The currency pair is currently trading at 1.3239, up 0.40% from previous levels.
Despite the overbought condition of the Relative Strength Index (RSI), the uptrend in the GBP/USD remains, with the possibility of a test towards the March 2022 peak at 1.3298 if the pair can reclaim the top trendline of an ascending channel. Following this, the next resistance levels would be at 1.3300 and 1.3437. Conversely, a drop below 1.3200 could send the GBP/USD towards support levels at 1.3130 and 1.3100.
Looking at the British Pound’s performance against major currencies, the table shows that it was the strongest against the US Dollar. The percentage changes reflect the British Pound’s performance relative to other major currencies such as the Euro, Japanese Yen, Canadian Dollar, Australian Dollar, New Zealand Dollar, and Swiss Franc. The heat map provides a visual representation of the percentage changes of major currencies against each other.
In conclusion, the GBP/USD pair is currently in an uptrend, supported by a weaker US Dollar and expectations of a rate cut by the Federal Reserve. Key support levels to watch include 1.3043, while resistance levels are at 1.3298 and 1.3437. Traders should monitor the performance of the Pound Sterling against other major currencies for further insights into market sentiment.
